The NFLPA, MLBPA, NBPA, NHLPA and MLSPA in a letter to Commodity Futures Trading Commission Chair Michael Selig wrote that while the CFTC allows prediction markets to offer sports-related contracts, it should implement “appropriate regulations that protect professional athletes and their families akin to those in place” under state gambling authorities. The players associations added the “failure to do so not only increases the risks facing our members, but also provides more latitude to those seeking to manipulate sporting events.” The players associations laid out what they would like to see as part of any rules around prediction markets offering sports-related contract:
- A “prohibition on contracts based on a ‘negative’ outcome or that can be manipulated by a single individual,” which would “include contracts based on so-called ‘under’ bets or on whether an athlete is injured or penalized.”
- Establishment of a “transparent and easy process to petition the CFTC to disallow and remove” prohibited contracts.
- The creation of a “transparent list of bad actors who are prohibited from participating in event contracts.”
- Requiring all sporting venues to “enact and enforce specific fan conduct policies that prohibit prediction market-related harassment.”
The players association also noted if leagues share information regarding potential misconduct with the CFTC, “any affected athletes and their Players Association representatives should receive the same information at the same time” to preserve athletes’ right to due process. They added the CFTC should “ban the unauthorized use” of information relating to athletes’ health and performance to protect athletes’ privacy (SBJ).
